Tuesday, April 26, 2016

Earlier today we improved
on how transaction fees are calculated, fees for outgoing Bitcoin
transaction are now paid once every hour based on the average fee per
transaction instead of directly after every transaction.

Last
year we changed how fees on outgoing Bitcoin transactions were
calculated from a fixed fee model to a dynamic model based on how
congested the Bitcoin Blockchain is. This helps to ensure that every
outgoing Bitcoin transaction from LocalBitcoins gets confirmed within
the first three blocks of the transaction being sent regardless of how many transactions are waiting to be confirmed.

After this change we noticed that the transaction fee can change within a large margin from transaction to transaction. Now to help make the transaction fee more predictable we're collecting all
Bitcoin transaction fees paid during the past hour and averaging them
out over all sent transactions during the same hour. This will help to keep the transaction
fee consistent and more predictable when you send Bitcoins to other wallets.

For example; During the past
hour you've made two outgoing transactions from LocalBitcoins. In total
LocalBitcoins users made 100 outgoing transactions for a total
transaction fee cost of 0.005 BTC during the same hour. For your two
transactions, you would pay 0.00010 BTC (0.00005 + 0.00005) as a
transaction fee.

The transaction fees for your outgoing Bitcoin
transactions will be paid from your LocalBitcoins wallet once every 6 hours,
in case your wallet is empty the fee will be taken from your next
Bitcoin purchase or incoming Bitcoin transaction.